Slide 1: Corporate Update
For personal use only Portfolio of TCF – scale XST Gas Prospects Xstate Resources Limited Onshore California with Corporate Identified Production Asset Acquisitions to Update deliver cash flow and low 13 May 2016 risk growth www.xstate.com.au
Slide 2: Company Overview
Company Overview For personal use only Capital Structure Shares on Issue 296 million XST Exploration Interests Market Cap @$0.014 per share A$4.1 million1 Unlisted Options 19.5 million at 4-8 cents expire 31/05/16 2.5 million at 5 cents expire 31/12/16 Shareholders Sacramento Top 10 shareholders 39%
Slide 3: Recent Activity
Recent Activity For personal use only • The Company recently announced a strategic shift to focus on low risk conventional production opportunities onshore U.S.A targeting underperforming or distressed assets at or near the bottom of the oil price cycle. • It is the Company’s intention to concentrat
Slide 4: The Xstate Board – Highly Balanced Skill Set
The Xstate Board – Highly Balanced Skill Set For personal use only Xstate has a small but highly experienced committed Board with complementary skills and a proven track record • Chris Hodge – Managing Director is a structural geologist and petroleum geophysicist by training. Over a career spanning
Slide 5: Why California
Why California For personal use only California - Historically World Class Oil & Gas Province Hydrocarbon Basins and Major Fields • High probability of finding hydrocarbons: +35bn boe discovered; Contains 15 of the U.S.A largest oil fields by EUR and 3 of the top 10. • Production peaked in 1985 with
Slide 6: Xstate's Strategic Positioning
Xstate’s Strategic Positioning For personal use only • In addition to its current exploration portfolio, Xstate is pursuing a strategy of low risk conventional production enhancement opportunities onshore U.S.A focusing on distressed assets at or near the bottom of the cycle held by companies that a
Slide 7: Execution Plan
Execution Plan For personal use only • Xstate is seeking to augment its high impact/reward exploration acreage in the Sacramento Basin by acquiring producing assets onshore USA. Focused on low risk oil assets in mature fields with existing production. • The Company has identified a number of convent
Slide 8: Typical Asset Profile Characteristics
Typical Asset Profile Characteristics For personal use only Target onshore Conventional high quality rocks Neglected fields: Significant production at shut in; Significant remaining reserves (low RF); Predictable historical cumulative oil production Technical 3D seismic coverage availability to a
Slide 9: Typical Asset Profile Characteristics: Financial
Typical Asset Profile Characteristics: Financial For personal use only • Initial asset acquisition and development capital sourced upfront. • Thereafter, the objective is for the asset to provide sufficient capital for reinvestment purposes. • Its anticipated the company will require 3-4 assets to p
Slide 10: Sacramento Basin Strategy
Sacramento Basin Strategy For personal use only Major position in prolific basin Sacramento Gas XST Working Prospective Interest Resource (100%) • Innovative geological and geophysical interpretation to Alvares Appraisal 25% >2 TCF identify prospects Dempsey 10% 1 TCF • Ground floor land positions o
Slide 11: Alvares Appraisal Project - >2 TCF 25% equity
Alvares Appraisal Project - >2 TCF 25% equity For personal use only Alvares Project • Xstate’s Alvares Project is based around the appraisal of the Alvares – 1 well, which was drilled in 1982 on a large anticline and encountered over 1,500m of gas shows and flowed gas to surface. • The JV is conside
Slide 12: Dempsey Prospect ~ TCF 10% equity
Dempsey Prospect ~ 1 TCF 10% equity For personal use only • 1 TCF gas exploration well with 7 potential reservoir targets • Reservoirs range from conventional Forbes (productive in this area) through to under-explored structural and stratigraphic Early Cretaceous targets • Structure mapped from 3D s
Slide 13: Forward Program – Sacramento Basin
Forward Program – Sacramento Basin For personal use only • Secure farmin partner for Dempsey and Alvares prospects • Drill Dempsey (~1 TCF gas – via farmout) With follow-up locations, a • Drill Alvares (>2 TCF gas – via farmout) portfolio of high impact prospects • Potentially secure additional inte
Slide 14: Conclusions
Conclusions For personal use only • Xstate has a solid base from which to build an E&P company onshore in the USA • The company is focused on strategic value creation rather than activity • In the current low oil price environment XST continues to seek a suitable farminee – at the same time prudentl
Slide 15: Thank You
Thank You For personal use only For further information please contact Chris Hodge Registered Corporate Office Managing Director Level 2, 55 Carrington Street Tel: +61 8 9226 0866 Nedlands W.A. 6009 Email: chris.hodge@xstate.com.au Postal Address Ian Tchacos PO Box 985 Director – Developments and Ac